XRP Drops 1.132% Amid Institutional ETF Launch

XRP's latest price was $3.00, down 1.132% in the last 24 hours. The cryptocurrency markets have been abuzz with excitement this month, particularly due to the recent developments surrounding XRP. Ripple's legal victory against the SEC has cleared the path for significant institutional investment, with rumors circulating that BlackRock might file for a spot XRP ETF in 2026. This potential move has sparked considerable interest among traders and analysts, who estimate an 80–90% chance of its approval.

An approved ETF could significantly boost trading volumes and attract strong institutional interest, potentially driving the price of XRP much higher. Investment managers Rex Shares and Osprey Funds are set to launch their XRP-based exchange-traded fund (ETF) this week. This will be the first US fund to offer investors direct exposure to the performance of XRP, marking a significant milestone for the cryptocurrency.

The REX-Osprey XRP ETF, tickered XRPR, is structured differently from other XRP ETF proposals. It is registered under the Investment Company Act of 1940, which is typically used for mutual funds and diversified ETFs, rather than the Securities Act of 1933 framework used for commodity-based and asset-backed vehicles. This structure means that XRPR is more akin to a mutual fund than a commodity trust.

The REX-Osprey XRP ETF will primarily hold XRP directly and will invest at least 40% of its assets in the token or related instruments. The approval process for such vehicles, which use unique legal workarounds, is different since they do not require explicit approval from the Securities and Exchange Commission. They automatically become effective after 75 days unless the Commission moves to block their introduction.

XRP enthusiasts have long awaited an exchange-traded fund in the U.S. that tracks the Ripple-affiliated token’s price movements. The imminent launch of the REX-Osprey XRP ETF marks a significant breakthrough, as it will be the first of its kind to debut on Wall Street. This development is expected to provide valuable insights into the market impact of future ETFs.

Ripple's XRP has recently regained its position among the top 100 global assets by market capitalization as of mid-September 2025. This renewed prominence reflects significant market interest following several key developments surrounding the digital asset and its underlying technology. A recent ruling concluded that XRP itself does not constitute an investment contract, potentially reducing uncertainties regarding the asset's status and paving the way for broader adoption within institutional frameworks.

Speculation continues regarding the potential for XRP to be included in U.S. exchange-traded fund (ETF) baskets designed for digital assets. Such an inclusion could significantly enhance accessibility and mainstream adoption, although concrete progress on specific XRP ETFs remains pending as relevant authorities deliberate. Recent announcements indicate decisions on several crypto ETF applications, including those potentially tied to XRP, have been postponed.

Significantly strengthening XRP's ecosystem utility, Ripple Labs introduced its RLUSD stablecoin on September 10, 2025. The launch of RLUSD represents a strategic expansion beyond cross-border payments, aiming to foster greater stability and interoperability within the XRP Ledger (XRPL) and its growing Decentralized Finance (DeFi) applications. This move is seen as a crucial step in enhancing the utility and adoption of XRP within the broader financial ecosystem.

Market sentiment within the cryptocurrency community reflects a mixture of optimism and cautious debate regarding XRP's trajectory. Enthusiastic projections about potential growth trajectories have emerged online, often highlighting the digital asset's historical capacity for rapid expansion. However, analysts frequently counterbalance this with caution, emphasizing that sustained value appreciation relies heavily on continued technological adoption, regulatory clarity, and practical application growth on the XRPL.

The development focus remains firmly on expanding the XRP Ledger's practical use cases beyond basic token value. Developers actively explore and implement applications leveraging the XRPL's strengths in facilitating payments, enabling DeFi services, tokenizing real-world assets (RWA), and potentially supporting Central Bank Digital Currencies (CBDCs) and stablecoin settlements. This ongoing utility development is seen as foundational to XRP's long-term proposition within the digital asset space.